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Gold prices in Tunisia have soared to unprecedented levels, influenced by a global rally in precious metals that has seen the international price of gold exceed $3,800 per ounce. This spike has rippled through local markets, straining both jewelry retailers and consumers, and raising alarms within the industry.
Hatem Ben Youssef, President of the National Union of Jewelers, expressed growing concern over the unsustainable nature of current trading conditions. In an interview with Mosaique FM, Ben Youssef revealed that most jewelers operate with extremely tight profit margins—rarely exceeding 2.5% after covering expenses. The recent surge in prices has pushed many into precarious positions, forcing them, at times, to sell gold below its actual value just to reduce losses and keep business afloat.
Compounding the crisis is the ongoing closure of the Central Guarantee Office (Poinçon), a regulatory body responsible for authenticating and certifying gold. This office plays a critical role in maintaining real-time price adjustments and ensuring that jewelry meets required standards. Its shutdown has led to operational gridlock, preventing jewelers from recalibrating their prices in line with market fluctuations and stalling the flow of gold within the formal market.
As prices soar, consumer demand has noticeably declined, especially during the traditionally busy wedding season. According to Ben Youssef, many buyers are now opting for smaller, more affordable gold items rather than investing in large or elaborate pieces. This shift reflects a broader trend of consumer caution, driven by financial uncertainty and diminished purchasing power.
The unstable market conditions have also triggered a troubling increase in unregulated gold trading, with some sales and purchases now occurring outside official oversight. This lack of transparency not only undermines consumer protections but also opens the door to speculation and price manipulation, further distorting the market.
Ben Youssef emphasized that the reopening of the Central Guarantee Office is vital to restoring stability and trust in the gold market. Doing so, he argued, would enhance transparency, protect both traders and consumers, and allow for more consistent and fair pricing. He believes that such a step would also curb illegal trading practices and revitalize demand, helping to bring the market back into balance.
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Tunisia’s gold market is facing a perfect storm of global price shocks, local administrative dysfunction, and dwindling consumer confidence. Industry leaders are calling for urgent intervention, particularly the restoration of regulatory oversight, to stabilize the sector and prevent long-term damage.
